4.

a. Fill out the table below assuming that the government taxes 40 percent of the first $10,000 of income and 10 percent of all income above $10,000. Average Tax Rate Marginal Tax Rate Income Taxes Paid $10,000 20,000 30,000 40,000 50,000

b. Compare the taxes for someone making $10,000 to those of someone making $50,000 in part a above. Is this tax system progressive, regressive, or proportional? Explain.